Question

Original cost = Rs 1,26,000. Salvage value = 6,000. Useful Life = 6 years. Annual depreciation under SLM = ?

• A. Rs.$21,000$
• B. Rs.$20,000$
• C. Rs.$15,000$
• D. Rs.$14,000$

Answer 1

The correct option is B Rs.$20,000$

Depreciation as per SLM basis = Cost of the asset - salvage value

--------------------------------------------------

Number of years

= 1,26,000 - 6,000

--------------------------

6 years

= RS-20,000.